NVDA - Think Nvidia Is Overvalued? Buy This Magnificent Seven Stock Instead
2024-05-05 10:15:00 ET
Those who invested in Nvidia (NASDAQ: NVDA) a few years ago are sitting pretty right now. The tech giant has seen its shares skyrocket, even more so than its otherwise high-performing "Magnificent Seven" peers, partly thanks to its artificial intelligence (AI) system sales.
However, as is often the case with stocks that crush the market, some investors are now worried about valuation. With a forward price-to-earnings ratio of about 35 -- where the average for the S&P 500 is 20 -- Nvidia's shares don't exactly look cheap.
The premium might be justified if the chipmaker continues delivering the kinds of results it has lately, but for investors who want a cheaper Magnificent Seven stock that can also allow them to profit from the AI boom, let's consider why Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is a solid option.
For further details see:
Think Nvidia Is Overvalued? Buy This "Magnificent Seven" Stock Instead